2

Objectives
• Describe the features and implications of IT systems
used by organisations for:
• Stock control
• Data logging
• Data analysis
• General office tasks
• Creative tasks
• Advertising
• Manufacturing
• Security
IT systems in organisations
Learning Aim E Impact of IT systems

Starter
• A sandwich company produces 500,000 sandwiches
per day in their factory
• These sandwiches are shipped overnight to stores
around the country
• What stock will they require
to make these sandwiches?
IT systems in organisations
Learning Aim E Impact of IT systems

Stock required
• Ingredients per day:
• Bread slices – 1,000,000
• Butter – 7,000 kg
• Cheese – 5,000 kg
• Ham – 3,000 kg
• Tomatoes – 100,000

• Other stock:
• Cardboard/plastic sandwich case – 500,000
• Cardboard boxes for shipping – 10,000
IT systems in organisations
Learning Aim E Impact of IT systems

Problems with stock

• Products held by a company are known as
their stock
• There are problems with holding stock:
• Large amounts of storage space are needed to hold it
• Security costs are needed to prevent theft
• Some stock, especially food, is perishable and needs to be
sold quickly
• How are problems with stock levels solved?
IT systems in organisations
Learning Aim E Impact of IT systems

Stock control
• Stock control systems will keep control of stock
levels in a database
• Items are scanned when sold and the stock
level is updated
• New orders are transmitted to suppliers
via the Internet
• Deliveries are tracked
• RFID tags speed up counting items
for stock control
IT systems in organisations
Learning Aim E Impact of IT systems

Stock control
• An important function of any business is to track
stock levels and reorder when low
• If the business has too little
stock then it won’t be able to
keep up with demand
• If they have too much stock
they will have spent money
that could have been better
spent elsewhere; they will
also need to pay more
for storage
• How do modern companies solve this?
IT systems in organisations
Learning Aim E Impact of IT systems

Just in Time (JIT)

• Companies use IT systems for stock control
• Just in Time systems order products so they arrive
‘just in time’ to be used
• Computers can automatically make orders based on current
stock levels and production rates
• Analysis of data can predict future ordering – for instance, hot
weather in summer could predict the need for more barbecue
related products
IT systems in organisations
Learning Aim E Impact of IT systems

Case study: KFC

• In 2018, KFC had a chicken shortage
• They had moved to a new distributor – DHL
• Their previous distributor had 6 warehouses; DHL was using
just one single warehouse in Rugby
• On February 14th, there was a vehicle collision
on the M6 causing the road to close
• By February 16th, KFCs were missing
ingredients
• By February 18th, 69% of stores had closed

• What do you think was the main cause of

the chicken shortage and store closures?
IT systems in organisations
Learning Aim E Impact of IT systems

Worksheet 2
• Now complete Task 1 on Worksheet 2
IT systems in organisations
Learning Aim E Impact of IT systems

Manufacturing
• IT is involved in the manufacture
of a huge number of products.
They will control:
• Robots
• Conveyor belts and motors
• Sensors

• Food items such as chocolate

are also mostly manufactured
by machine
• Name five other products that will
use IT in their manufacture
IT systems in organisations
Learning Aim E Impact of IT systems

Data logging
• A data logging system uses a robust data
logger to record precise data from input
sensors in real time
• They can be used in any location including
harsh environments
• They can be used 24 hours a day

• Weather data logging may measure

temperature, rainfall and pressure
• What data logging could be
carried out in a chocolate factory?
IT systems in organisations
Learning Aim E Impact of IT systems

Data logging
• Manufacture:
• Conveyor belt speed
• Chocolate flow rate
• Chocolate temperature
• Product final weight
• Weight/number of rejected chocolates

• People:
• Line staff clocking in and out
• Staff productivity
IT systems in organisations
Learning Aim E Impact of IT systems

Data analysis
• Whilst data loggers and other IT systems produce
data they do not interpret it
• Data analysis viewing and transforming data so that
useful information and conclusions can be made
• These conclusions can lead to decisions

• Data analysis could be used to predict sales of a

particular line of products
• What other examples could
data analysis be used for?
IT systems in organisations
Learning Aim E Impact of IT systems

Data analysis uses

• Some examples:
• Research to find if a particular drug is effective or not
• Trends in climate change and their effects
• Analysis of road traffic usage
• How users interact with a website
• Where to build a development of new homes
IT systems in organisations
Learning Aim E Impact of IT systems

Case study: Chocolate box sales

• A chocolate factory records their monthly sales
• The raw sales have been transformed to a chart as part
of a data analysis
• What conclusions could be made about sales
that could inform the company for next year?
  Year 1 Year 2 Year 3 Year 4 Year 5 Average
Jan 362 370 338 392 354 363.2
Feb 543 565 531 518 600 551.4
Mar 378 351 308 353 399 357.8
Apr 502 526 586 521 563 539.6
May 396 354 331 351 383 363
Jun 277 270 269 298 264 275.6
Jul 271 223 267 289 277 265.4
Aug 151 241 229 160 163 188.8
Sep 194 215 168 247 168 198.4
Oct 258 182 233 260 248 236.2
Nov 354 329 393 383 358 363.4
Dec 666 633 683 605 606 638.6
IT systems in organisations
Learning Aim E Impact of IT systems

Chocolate box sales

• Sales trends:
• High in February
(Valentines day)
• High in April
(Easter)
• Low in summer
• Very high in
December (Christmas)
• The company can expect these trends each year
which will help them know when to recruit
temporary staff
IT systems in organisations
Learning Aim E Impact of IT systems

Worksheet 2
• Now complete Task 2 on Worksheet 2
IT systems in organisations
Learning Aim E Impact of IT systems

Automation of office tasks

• The use of technology has resulted in many office
tasks being automated
• In the past, letters sent to customers would often be
photocopies of the same letter with a
handwritten name
• Mail merge allows an individual
name and address to be put on
each letter
• What other general
office tasks now
make use of IT systems?
IT systems in organisations
Learning Aim E Impact of IT systems

General office tasks

• Suggestions for general office tasks that have been
automated:
• Voicemail
• Switchboard
• Automated calling
• Financial software and spreadsheets
• Databases – including specialist software that makes use of
databases
• Customer Relationship Management (CRM) software
• Clocking in/out software
IT systems in organisations
Learning Aim E Impact of IT systems

More efficiency
• Technology often makes work processes
more efficient
• It was predicted by economist
John Maynard Keynes in 1930 that his
grandchildren would only need to work
15 hours a week due to the
advancement of efficiency
in the workplace
• To what extent do you think
technology has made
workers more efficient?
• Why are we not all working
15 hour weeks?
IT systems in organisations
Learning Aim E Impact of IT systems

Creative industries
• Creative industries have seen many changes as a
result of advanced in IT systems
• 2D animation is now carried out by computer
which makes it more efficient for an animator
• 3D animation is now possible and virtual
cameras can be used to take different
angles of 3D models
• What other changes have
occurred in creative industries?
IT systems in organisations
Learning Aim E Impact of IT systems

Creative industries
• Some possible creative industries that have been
impacted by advances in IT
• Music production is recorded digitally and in high quality
• Digital Audio Workstations / sequencers
• Vloggers / YouTubers having access to streaming without
needing to go through broadcast media
• Bloggers / Social media influencers are able to use IT to
reach wide audiences in niche interests
• Newspapers and magazines are increasingly distributed
through the web
• Web design is an entire new creative industry
IT systems in organisations
Learning Aim E Impact of IT systems

Case study: OBSBOT Tail

• In 2019, the OBSBOT Tail video camera
was released
• The camera has AI tracking so can
follow a person as they move
• It moves on a 3-axis gimbal
• Video quality is 4K at 60fps

• What type of job will this type

of technology replace?
IT systems in organisations
Learning Aim E Impact of IT systems

Worksheet 2
• Now complete Task 3 and Task 4
on Worksheet 2
IT systems in organisations
Learning Aim E Impact of IT systems

Advertising
• IT has had a profound impact on advertising
• It is possible to track use of a website
• The use of cookies allows this across numerous websites
• Companies can use this information to make targeted
advertising campaigns
• Companies will track interaction, such as email open
rates, with advertising campaigns
• What other features of web and email usage can be tracked?
IT systems in organisations
Learning Aim E Impact of IT systems

Advertising metrics
• The following metrics can be tracked:
• Email:
• Open rate
• Click through rate

• Websites:
• Pages visited
• How long spent on each page
• Where on a page the user clicks / hovers mouse; this can be
used to build a ‘heat map’ of user interaction
• When the page is visited
IT systems in organisations
Learning Aim E Impact of IT systems

Security
• CCTV systems used to have low picture quality and
around two frames per second
• This made it hard to identify criminals
• Criminals could find the video recorder and destroy it

• Modern CCTV systems are

high quality
• The video data can be stored
remotely on the Internet
• What other IT systems are
used for security?
IT systems in organisations
Learning Aim E Impact of IT systems

Security systems
• Software to protect IT systems:
• Antivirus, firewalls, monitoring software

• Automatic Number Plate Recognition (ANPR)

• Door/barrier entry and exit systems
• Digital safes
• Home alarms
• Facial recognition
IT systems in organisations
Learning Aim E Impact of IT systems

Worksheet 2
• Now complete Task 5 on Worksheet 2
IT systems in organisations
Learning Aim E Impact of IT systems

Plenary
• Fill in the blanks below using the words at the
bottom of the slide:
• A clothes shop holds a supply of products in the shop and
warehouse. They use software to keep track of
products and what they need to order. is used
to monitor the number of customers in each section of the
store. The results of establish areas of the
store that are popular and those which may need
improvement. The company makes use of CCTV and RFID
tags for its . IT is also used in
such as . The company’s catalogue is edited
on a computer and targeted at certain loyal customers.
• Advertising, security, data analysis, data logging, stock
control, creative tasks
IT systems in organisations
Learning Aim E Impact of IT systems

Plenary
• Fill in the blanks below using the words at the
bottom of the slide:
• A clothes shop holds a supply of products in the shop and
warehouse. They use stock control software to keep track of
products and what they need to order. Data logging is used
to monitor the number of customers in each section of the
store. The results of data analysis establish areas of the
store that are popular and those which may need
improvement. The company makes use of CCTV and RFID
tags for its security . IT is also used in creative tasks
such as advertising. The company’s catalogue is edited
on a computer and targeted at certain loyal customers.
• Advertising, security, data analysis, data logging, stock
control, creative tasks
IT systems in organisations
Learning Aim E Impact of IT systems

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